Salama/Islamic Arab Insurance Co. (P.S.C.) (Salama) is a UAE-based takaful insurance group with a diverse book of business across the Middle East and Africa. Intermediate industry and country risk exposure reflects its business predominantly being based in the UAE. Adequate competitive position due to diversification by line of business, but diminished by the demise of its Best Re subgroup's non-life business. Capital adequacy to remain extremely strong through 2016 as Best Re liabilities gradually run-off. Our base-case scenario anticipates a return to underwriting profits in 2014-2016. Moderate risk position, reflecting some sector investment concentrations and some higher risk exposure to real estate, equities, and sub-investment grade bank and debt holdings. Financial flexibility is adequate, relative to modest anticipated needs. We
